JPMorgan Chase (JPM) is addressing a concerning trend in the banking industry following the death of a 35-year-old Bank of America employee in May, who succumbed to a heart attack after enduring 100-hour workweeks.
According to a report from the Wall Street Journal, JPMorgan Chase has decided to implement new policies, including capping the work hours of its junior investment bankers at 80 hours per week, with exceptions only for live deals. Additionally, the bank has introduced further measures to ensure employee well-being.
A memo obtained by the Guardian disclosed that JPMorgan Chase has established a new position titled “global investment banking associate and analyst leader.” This role is aimed at ensuring the well-being and success of junior bankers. Ryland McClendon, currently a managing director at the firm, has been appointed to this new role. The memo highlighted that McClendon will be overseeing associates and analysts on a global scale, focusing on their well-being, success, and performance for the business and its clients.
McClendon will also be responsible for evaluating the enforcement of the new 80-hour workweek cap. To assist with this effort, JPMorgan Chase plans to hire additional junior bankers to distribute workloads more evenly among employees.
The changes come in the wake of CEO Jamie Dimon’s reflections on the death of Leo Lukenas III, the Bank of America employee who passed away after excessively long work hours. Dimon told investors that the incident spurred immediate discussions within the company, underscoring the importance of understanding and learning from the tragedy.
A survey from Wall Street Oasis in 2023 revealed that investment banking analysts typically work over 70 hours a week, often staying in the office past midnight. The survey also indicated that a significant percentage of JPMorgan Chase employees felt that their work hours negatively impacted their personal relationships, with many citing unrealistic deadlines.
JPMorgan Chase has not yet provided a comment on these new measures.